House Will Pass Oil and Gas Draft Bill This Year

 
Anne Aprina Priskila, Kartini L Makmur
 
In the pursuit of revising the current Oil and Gas Law, Commission VII at the House of Representatives (House) has teamed up with the Ministry of Energy and Mineral Resources (ESDM) to accelerate the review process.
 
To do so, Kardaya Warnika, Chairman of Commission VII, emphasizes that it is essential for ESDM to make a technical study on this matter. The study will act as the basis for determining the main content and the general framework for the draft bill. 
 
One issue to be highlighted, says Mr. Kardaya, is the distribution of authority between the regulatory and supervisory agencies, both of whichare currently held by the Regulatory Agency for Downstream Oil and Gas (Badan Pengatur Hilir Minyak dan Gas Bumi – BPH Migas).
 
In addition, the status of the oil and gas regulatory body must be considered, as to whether or not it will be a governmental institution. Some models from other countries provide insight and can be taken into consideration. For instance, Norway established its oil and gas implementing body within the government’s line of authority. Meanwhile, Saudi Arabia and Iran excluded such body from government functions.
 
"We propose the regulatory agency’s functions should be separated from the function of the supervisory agency," said Mr. Kardaya on Wednesday.
 
Adding to Mr. Kardaya’s comments, Said Didu, Special Staff at ESDM, concedes that the government is currently conducting a review of which agency can cover the national operation of oil and gas in accordance with the 1945 Constitution.
 
The government may keep the functional segregation of the Special Work Unit on Oil and Gas Upstream Business (Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Migas – SKK MIGAS) and PT Pertamina (Persero) or otherwise put them together.

In the end, the success of draft bill will depend on good team work between the House and the Ministry. Currently, the Ministry is still in the process of finishing its technical study, leaving others guessing when it will finish its work.


(hot/kc)
 
Anne Aprina Priskila, Kartini L Makmur
 
In the pursuit of revising the current Oil and Gas Law, Commission VII at the House of Representatives (House) has teamed up with the Ministry of Energy and Mineral Resources (ESDM) to accelerate the review process.
 
To do so, Kardaya Warnika, Chairman of Commission VII, emphasizes that it is essential for ESDM to make a technical study on this matter. The study will act as the basis for determining the main content and the general framework for the draft bill. 
 
One issue to be highlighted, says Mr. Kardaya, is the distribution of authority between the regulatory and supervisory agencies, both of whichare currently held by the Regulatory Agency for Downstream Oil and Gas (Badan Pengatur Hilir Minyak dan Gas Bumi – BPH Migas).
 
In addition, the status of the oil and gas regulatory body must be considered, as to whether or not it will be a governmental institution. Some models from other countries provide insight and can be taken into consideration. For instance, Norway established its oil and gas implementing body within the government’s line of authority. Meanwhile, Saudi Arabia and Iran excluded such body from government functions.
 
"We propose the regulatory agency’s functions should be separated from the function of the supervisory agency," said Mr. Kardaya on Wednesday.
 
Adding to Mr. Kardaya’s comments, Said Didu, Special Staff at ESDM, concedes that the government is currently conducting a review of which agency can cover the national operation of oil and gas in accordance with the 1945 Constitution.
 
The government may keep the functional segregation of the Special Work Unit on Oil and Gas Upstream Business (Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Migas – SKK MIGAS) and PT Pertamina (Persero) or otherwise put them together.

In the end, the success of draft bill will depend on good team work between the House and the Ministry. Currently, the Ministry is still in the process of finishing its technical study, leaving others guessing when it will finish its work.


(hot/kc)
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